The construction of the mini hydro power plant (MHPP) will involve banks or financial institutions to finance the project. The bank will conduct a due diligence prior finance the project. The Due diligence will be conducted to various aspects, including technical aspect. Currently, banks in Indonesia do not have the same standards regarding what variables will be due to conduct technical due diligence of MHPP. This study to provide an information of the important variables to be considered in relation to the technical aspect in determining the risk of developing a MHPP project in Indonesia. The method used in this study is the Relative Importance Index (RII) and Analytical Hierarchy Process (AHP). This study involved the respondents coming from MHPP developers (independent power producer/IPP) and consultants who develop MHPP in Indonesia. Based on this study, there are 3 (three) most important technical variables to be considered when carrying out technical due diligence are the quality of feasibility study, detailed engineering design (civil work) and local grid conditions. By knowing the important technical variables, it will be easier for banks to carry out technical due diligence which will accelerate the financial closure of an MHPP project in Indonesia.

Topics
Power plants, Hydroelectric energy, Decision theory, Engineers
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